Thursday, July 13, 2017

Economy: What We Could Learn From China`s Trade Numbers

(Drivebycuriosity) - If we believe the media then China`s economy is about to crash. This morning we got a quite different message from China`s economic front:

Exports from China rose 11.3% year-on-year to USD 196.6 billion in June of 2017, faster than an 8.7% rise in the prior month and beating market estimates of an 8.7% growth (tradingeconomics). Accelerating export sales are a sign that the global economy is getting stronger. Apparently China is benefiting from the upswing in other emerging markets (especially India & South East Asia), Europe`s recovery and some growth in the US.

Imports were even stronger: Imports to China increased by 17.2% year-on-year to USD 153.8 billion In June of 2017, after a 14.8% rise in a month earlier and higher than market estimates of a 13.1% rise (tradingeconomics). Faster growing Chinese imports signal that the far east economy is getting stronger, quite opposite to the continuous China crash calls.

The fact that imports continued to grow much faster than exports also show that China´s transformation is making progress. The country is changing from an export focused industrial economy into a large modern economy which is driven by domestic demand like the US. So, China´s importance as a global growth engine is strengthening - good news for all of us.

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